The global boiler turbine and generator industry are projected to surpass USD 60 billion by the year 2022, growing at a CAGR greater than 3% over the forecast period. Surging dependence on thermal power generation is expected to be the key factor for industry growth. However, the advent of sustainable energy may provide a challenge for industry growth.
The global BTG industry is fueled by the rising dependency on thermal power, which is anticipated to spur product demand. The growing industrialization, particularly in Asia Pacific is expected to encompass extensive BTG equipment applications in the industries including power & energy. The capitalistic mindset of numerous manufacturers may instigate them to adopt the existing power generation techniques and may positively impact industry growth. However, firms may soon have to take alternative measures for energy production, thereby impeding the industry growth, which can be attributed to rising concern for sustainable energy and stringent governmental regulations about emissions.
The growing economies such as China and India are expected to fuel demand over the forecast period. These countries are heavily reliant on power for development purposes, and growing population provides significant growth opportunities for companies operating in these regions. The growing industrialization in these countries is also expected to fuel demand, although modern energy generation techniques may soon outweigh the thermal sector electricity generation leading to a diminished boiler turbine and generator market share in future.
A large number of manufacturing industries in China is anticipated to spur BTG equipment demand over the next eight years. The industrial sector, particularly electronics manufacturing is shifting from U.S. to China, Taiwan and India owing to the availability of low price raw materials and low-cost labor, which is expected to catapult regional demand. China’s competency as a manufacturing hub incentivizes manufacturers to set up production plants in the country. It leads to a demand for energy generation equipment which is likely to favor BTG market growth. However, the global economy is moving towards sustainable energy production, and the onset of nuclear and hydro power generation is anticipated to pose a challenge for industry growth.
The industry faced a downfall post the global recession in 2008. However post that period, the demand has witnessed an upsurge and is likely to go up over the forecast period. The global surge in industrialization may not provide a feasible energy generation option using the sustainable sources. It may lead to the adoption of coal and gas for electricity generation and impel BTG equipment demand.
The local markets, however, are anticipated to be highly competitive owing to the advent of imported equipment which offers cost-efficient power generation solutions. Large companies such as Mitsubishi and Hitachi often enter into partnerships to market their products in foreign economies. It is anticipated to reduce the share for local manufacturers who strive to extract profits out of their investments. However, strategic partnerships are likely to provide an upsurge to the industry.
Asia-Pacific region accounts for the highest share of BTG market owing to China’s dominance on the global boiler turbine and generator demand followed by North America and Europe. However, the developed economies are anticipated to provide a challenging market owing to use of alternative energy sources and stringent government norms.
Power generation application accounts for a substantial share of the global BTG industry. Initiatives such as the use of supercritical and ultra-supercritical boilers to improve efficiency may directly influence growth, which may also lead to technological developments in the products which create a market for new offerings. Consumers experience massive costs in upgrading the equipment which is anticipated pose a challenge for growth.
Prominent players in BTG market include Vestas, Enercon, Siemens, General Electric, Atlas Copco, Caterpillar, Ingersoll Rand, Kirloskar, ABB, and Bosch. Key players focus on the development of low-emission boilers, turbines and generators to encourage clean energy and make equipment for regions with stringent regulation. Further, several players such as Mitsubishi and Hitachi enter into a strategic partnership and offer cheap price BTG products across the globe.
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